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CENTURY TEXTILES 2023-24 Annual Report Analysis

Wed, 3 Jul

CENTURY TEXTILES has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the company during FY23-24.

CENTURY TEXTILES Income Statement Analysis

• Operating income during the year rose 17.8% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 8.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 14.2% in FY24 as against 18.3% in FY23.
• Depreciation charges increased by 7.1% and finance costs increased by 3.8% YoY, respectively.
• Other income grew by 129.7% YoY.
• Net profit for the year declined by 5.5% YoY.
• Net profit margins during the year declined from 8.4% in FY23 to 6.8% in FY24.

CENTURY TEXTILES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	38,318	45,135	17.8%
Other income	Rs m	246	565	129.7%
Total Revenues	Rs m	38,564	45,700	18.5%
Gross profit	Rs m	7,011	6,388	-8.9%
Depreciation	Rs m	1,959	2,099	7.1%
Interest	Rs m	342	355	3.8%
Profit before tax	Rs m	4,955	4,499	-9.2%
Tax	Rs m	1,729	1,450	-16.1%
Profit after tax	Rs m	3,226	3,049	-5.5%
Gross profit margin	%	18.3	14.2
Effective tax rate	%	34.9	32.2
Net profit margin	%	8.4	6.8

For Investors: Our Big Prediction

CENTURY TEXTILES Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 35 billion as compared to Rs 34 billion in FY23, thereby witnessing an increase of 3.6%.
• Long-term debt stood at Rs 24 billion as compared to Rs 4 billion during FY23, a growth of 490.3%.
• Current assets rose 52% and stood at Rs 60 billion, while fixed assets fell 2% and stood at Rs 44 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 104 billion as against Rs 84 billion during FY23, thereby witnessing a growth of 24%.

CENTURY TEXTILES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	38,868	39,680	2.1
Current Liabilities	Rs m	33,788	35,018	3.6
Long-term Debt	Rs m	3,991	23,557	490.3
Total Liabilities	Rs m	84,036	104,152	23.9
Current assets	Rs m	39,265	59,703	52.1
Fixed Assets	Rs m	44,771	43,943	-1.8
Total Assets	Rs m	84,036	104,152	23.9

CENTURY TEXTILES Cash Flow Statement Analysis

• CENTURY TEXTILES's cash flow from operating activities (CFO) during FY24 stood at Rs -3 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -5 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 13 billion, an improvement of 330% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 4 billion from the Rs -1 billion net cash flows seen during FY23.

CENTURY TEXTILES Cash Flow Statement 2023-24

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-23	Mar-24
Cash Flow from Operating Activities	Rs m	2,710	-3,153	-
Cash Flow from Investing Activities	Rs m	1,385	-5,241	-
Cash Flow from Financing Activities	Rs m	-5,535	12,722	-
Net Cash Flow	Rs m	-1,440	4,327	-

Current Valuations for CENTURY TEXTILES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 27.3, an decline from the EPS of Rs 28.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 2,371.0, stands at 119.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.7 times, while the price to sales ratio stands at 5.9 times.
• The company's price to cash flow (P/CF) ratio stood at 25.0 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Sales per share (Unadj.)	Rs	343.0	404.1
TTM Earnings per share	Rs	28.9	27.3
Diluted earnings per share	Rs	28.9	27.3
Price to Cash Flow	x	13.7	25.0
TTM P/E ratio	x	24.3	119.1
Price / Book Value ratio	x	2.2	3.2
Market Cap	Rs m	85,883	128,805
Dividends per share (Unadj.)	Rs	5.0	5.0

Ratio Analysis for CENTURY TEXTILES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.7x during FY24, from 1.2x during FY23. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio deteriorated and stood at 13.7x during FY24, from 15.5x during FY23. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company declined and down at 7.7% during FY24, from 8.3% during FY24. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company declined and down at 7.7% during FY24, from 12.4% during FY23. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company declined and down at 3.3% during FY24, from 4.2% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Current ratio	x	1.2	1.7
Debtors’ Days	Days	1	1
Interest coverage	x	15.5	13.7
Debt to equity ratio	x	0.1	0.6
Return on assets	%	4.2	3.3
Return on equity	%	8.3	7.7
Return on capital employed	%	12.4	7.7

To see how CENTURY TEXTILES has performed over the last 5 years, please visit here.

CENTURY TEXTILES Share Price Performance

Over the last one year, CENTURY TEXTILES share price has moved up from Rs 866.6 to Rs 2,371.0, registering a gain of Rs 1,504.4 or around 173.6%.

Overall, the S&P BSE SENSEX is up 22.5% over the year.

(To know more, check out historical annual results for CENTURY TEXTILES and quarterly results for CENTURY TEXTILES)